In one reporting period, the following transactions occur: 1. Cost of goods sold increases 2. A machine is sold for more than its book value 3. Accounts payable to suppliers was decreased Assuming that there were no other transactions and that all three transactions are independent of each other then the first, second, and third transactions can be described respectively as: Select one: O a. Decreasing, increasing, and decreasing incremental free cash flows O b. Decreasing, increasing, and increasing incremental free cash flows O c. Decreasing, decreasing, and decreasing incremental free cash flows O d. Decreasing, decreasing, and increasing incremental free cash flows O e. Increasing, increasing, and decreasing incremental free cash flows O f. Increasing, increasing, and increasing incremental free cash flows O g. Increasing, decreasing, and decreasing incremental free cash flows O h. Increasing, decreasing, and increasing incremental free cash flows
In one reporting period, the following transactions occur: 1. Cost of goods sold increases 2. A machine is sold for more than its book value 3. Accounts payable to suppliers was decreased Assuming that there were no other transactions and that all three transactions are independent of each other then the first, second, and third transactions can be described respectively as: Select one: O a. Decreasing, increasing, and decreasing incremental free cash flows O b. Decreasing, increasing, and increasing incremental free cash flows O c. Decreasing, decreasing, and decreasing incremental free cash flows O d. Decreasing, decreasing, and increasing incremental free cash flows O e. Increasing, increasing, and decreasing incremental free cash flows O f. Increasing, increasing, and increasing incremental free cash flows O g. Increasing, decreasing, and decreasing incremental free cash flows O h. Increasing, decreasing, and increasing incremental free cash flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In one reporting period, the following transactions occur:
1. Cost of goods sold increases
2. A machine is sold for more than its book value
3. Accounts payable to suppliers was decreased
Assuming that there were no other transactions and that all three transactions are independent of each other then the first, second, and third transactions can
be described respectively as:
Select one:
O a. Decreasing, increasing, and decreasing incremental free cash flows
O b. Decreasing, increasing, and increasing incremental free cash flows
O c. Decreasing, decreasing, and decreasing incremental free cash flows
O d. Decreasing, decreasing, and increasing incremental free cash flows
O e. Increasing, increasing, and decreasing incremental free cash flows
O f. Increasing, increasing, and increasing incremental free cash flows
O g. Increasing, decreasing, and decreasing incremental free cash flows
O h. Increasing, decreasing, and increasing incremental free cash flows
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